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The Diagram Below Shows Two Budget Deficit Functions for a Hypothetical

question 52

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The diagram below shows two budget deficit functions for a hypothetical economy. The diagram below shows two budget deficit functions for a hypothetical economy.   FIGURE 31-2 Refer to Figure 31-2.Initially,suppose real GDP is $100 million and the budget deficit is $14 million,as shown by point A.Which of the following events could result in a move from point A to point B? A) the implementation of an expansionary fiscal policy B) the implementation of a contractionary fiscal policy C) the implementation of an expansionary monetary policy D) the implementation of a contractionary monetary policy E) the economy entering into a boom FIGURE 31-2 Refer to Figure 31-2.Initially,suppose real GDP is $100 million and the budget deficit is $14 million,as shown by point A.Which of the following events could result in a move from point A to point B?


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